Kyle "Dusty" Foggo, 53, of Vienna, Va., struck a deal in U.S. District Court, pleading guilty to a single count of wire fraud for "depriving the United States and its citizens of their right to his honest services."

As part of the plea, prosecutors dropped 27 other counts against him and agreed to seek a prison term no longer than three years and a month.

Foggo was the agency's third-highest ranking officer from 2004 to 2006 and responsible for its daily operations. He will be sentenced on Jan. 8 and faces up to 20 years in prison. However, it is far more likely that U.S. District Judge James Cacheris will impose a sentence more closely in line with the three-year term recommended by prosecutors.

Foggo was not charged with taking bribes, but prosecutors said in court papers that he received up to $70,000 worth of gifts from his friend Brent Wilkes, a defense contractor. The gifts included expensive dinners at gourmet steakhouses and free vacations for Foggo and his family in Scotland and Hawaii.

He and his lawyer declined comment after the hearing.